Caps Corner

Shout outs from the fans

Sunday, October 24, 2010

Sometimes folks, including myself, get too caught up in over analyzing stocks and companies.

Sometimes folks, including myself, get tunnel vision or self imposed blinders on with investments and do not realize opportunity when they see it.

One very basic tenant of investing is, if you do not understand what a company does or how it makes money, then perhaps you should not invest in it.

By doing research, one can learn about a company and understand what it does and decide if it makes a good investment. By doing this one can literally spend hours staring at the computer screen reading articles, SEC filings, analyst reports and financial statements.

Or, one could take a moment to look at what you do when not staring at the screen with blinders on.